VA appraisal repairs in Arizona — who pays, what's required, and the 2022 termite rule
VA appraisals flag minimum property requirements that conventional appraisals ignore — peeling paint, missing handrails, exposed wiring, broken windows. When repairs are required, the deal can stall fast. Here's the playbook for who pays and how to keep things moving.
The 2022 VA termite rule change
VA Circular 26-22-11 (effective July 2022) lifted the longstanding restriction that veterans could not pay for termite inspections in most states. Now Arizona buyers can pay for the wood-destroying organism (WDO) inspection if the seller refuses — historically that was a deal-killer.
What didn't change: if termites or other wood-destroying organisms are found, the treatment + necessary repairs must happen before closing. VA won't fund a loan with active infestation.
What VA appraisal flags as required repairs
- Active roof leaks or visible water damage inside the home.
- Peeling or chipping paint on homes built pre-1978 (lead-based paint hazard).
- Missing handrails on stairs with more than 3 steps.
- Exposed electrical wiring or junction boxes without covers.
- Broken or missing window panes.
- Active termites, dry rot, or wood-destroying organisms.
- Inoperative HVAC where required for the climate.
- Property access issues (no driveable approach to the property).
Who pays — the post-2022 reality
| Repair type | Pre-2022 rule | Current rule |
|---|---|---|
| WDO/termite inspection | Seller only (most states) | Buyer can pay |
| WDO repair after positive finding | Seller | Seller (still required for funding) |
| Lead-paint repairs (pre-1978) | Seller or paid via concession | Same — seller or concession |
| Missing handrails / safety items | Seller typically | Buyer can pay if seller refuses |
| Roof / HVAC critical repairs | Negotiated | Negotiated — seller typically |
When the deal is at risk
A failed VA appraisal doesn't kill the deal. The required repairs document opens a negotiation. Seller can complete repairs, give a credit, drop price, or refuse — in which case the buyer can pay (post-2022) or walk.
What kills deals: the seller refuses, the buyer doesn't want to pay, and there's no contingency money for it. We coach buyers to budget a small repair reserve at offer time so this isn't a surprise.
Common questions
Can I waive the termite inspection on a VA loan?
VA doesn't require termite inspection in every state — Arizona is one where it's customary but not mandated. Lender overlay varies. Most lenders require it.
What if the seller refuses to fix peeling paint on a 1972 home?
Post-2022, you can pay the lead-paint remediation contractor directly. Cost on a typical Phoenix mid-century: $400-$1,200 depending on scope.
Does VA require a roof inspection?
Not separately — the appraiser will note visible roof issues. If they flag concerns, a separate roof certification may be required. Plan for ~$200-$300 if so.
What's MPR vs MPS?
Minimum Property Requirements (MPR) are VA's habitability standards. Minimum Property Standards (MPS) is FHA terminology. Different programs, similar idea.
How Mike + Cornerstone help
Phoenix-metro VA closings have me reviewing appraisal repair lists constantly. I'll tell you upfront which issues are common in your target area (older Mesa homes flag paint, North Scottsdale tile roofs flag underlayment, etc.) so we budget right at the offer stage and don't get blindsided in week three.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.